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Ichimoku Winners
Ichimoku Winners
Net
Ichimoku Kink Hy
Sincerely,
Ahmed Elagouz
Forex trader and investor.
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facebook.com/elagouz
twitter.com/a_elagouz
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Ichimoku Kinko Hyo means 'one glance equilibrium chart' or 'instant look at
the balance chart' and is sometimes referred to as 'one glance cloud chart'
based on the unique 'clouds' that feature in ichimoku charting.
Ichimoku factors in time as an additional element along with the price action,
similar to William Delbert Gann's trading ideas.
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Kijun-sen
Tenkan-sen
Senkou span A
Senkou span B
Senkou span B calculation: (highest high + lowest low)/2 calculated over the
past 52 time periods and plotted 26 periods ahead.
Also called leading span 2, this line forms the other edge of the kumo.
Kumo
Kumo (, cloud) is the space between senkou span A and B. The cloud edges
identify current and potential future support and resistance points.
The Kumo cloud changes in shape and height based on price changes. This
height represents volatility as larger price movements form thicker clouds,
which creates a stronger support and resistance. As thinner clouds offer only
weak support and resistance, prices can and tend to break through such thin
clouds.
Generally, markets are bullish when Senkou Span A is above Senkou Span B
and vice versa when markets are bearish. Traders often look for Kumo Twists
in future clouds, where Senkou Span A and B exchange positions, a signal of
potential trend reversals.
In addition to thickness, the strength of the cloud can also be ascertained by
its angle; upwards for bullish and downwards for bearish. Any clouds behind
price are also known as Kumo Shadows.
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Chikou span
Chikou () span calculation: today's closing price projected back 26 days on
the chart.
Also called the lagging span it is used as a support/resistance aid.
if the Chikou Span or the green line crosses the price in the bottom-up
direction, that's a buy signal. If the green line crosses the price from the topdown, that's a sell signal.
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Next part we will talk about each line on Ichimoku and we will see how does it
work and how can it helps us to read the market and take buy or sill signals from
it.
Let me show you tow pictures to know how to install Ichimoku and how to change
colors on it.
Ichimoku is already on any Mt4 software , now I will show you how to get it and
how to control which line in it do you need and how to hide another lines.
You can't delete lines but you can change colors as you see , so if you need the
red and the blue line , you can keep their colors and change any another indicator's
color to ( None ) to hide it.
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Now you can start to hide all and just keep the ( Lime green ) line which called
chikou span cause we will start talking about it at first.
Get ready dear , Forew Winner. We will start from the next page !
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Chikou span
Chikou span is has a Lime green color on the chart.
To know how is Chikou span , lets take a look at this picture.
The black line is the price in line chart and the lime green line is Chikou span.
Moves the same with the price as you see but projected back 26 candles.
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On the daily chart ( a candle = a day ) Chikou span is late 26 days behind
today's closing price.
Now you will ask yourself , how can I use an indicator projected back 26
candles. We looking at the future not the past.
let's see how can we use it in trading and how will this line give us signals to
trade.
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Here is another signal for sell on the live market , Chikou span is going down
while the price is going up and the signal now is ( sell )
The pictures number 2 has the result for the crossing. The price went down as
Chikou span expectation.
Now Look at the result after shorting. The price went down as Chikou span
expectation.
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So , we can search for sell signals if the Chikou span is under the price.
And search for Buy signals if the Chikou span is above the price.
In the next page we will see how can Chikou span help us while drawing
support and resistance lines.
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Chikou span helps also for drawing support and resistance lines.
Look at that picture , we matched the Chikou span's deflection which are on
the same line.
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Kijun-sen
Kijun-sen is a part of the Ichimoku Kinko Hyo charting system.
It shows a market trendand is typically used with medium-term momentum.
For the last past 26 periods
Kijun-sen gives signal with crossing the price as you see on the last picture.
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price starts to move away from the flattened Kijun-Sen but after that, it
changes direction and pulls back towards it again.
Look again at this picture and see how is the flattened Kijun-Sen attracts the
price like a magnet.
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Tenkan-sen
Tenken Sen measures the price average highest high and the lowest low for the last 9
periods.
Some traders use the Tenkan-Sen as a tool for predicting levels where the
price of the asset will find short-term support.
The Tenkan-Sen is always used with the Kijun-Sen to get signals from their
crosses.
And we will talk about that later.
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Kumo (clouds) is the space between senkou span A and B. The cloud edges identify
current and potential future support and resistance points.
Dear forex winner , Clouds on the chart not that complex as you imaging and you
will see now how are they easy and how much are they important
to read the market.
Give me a chance to explain to you with some pictures on the next page !
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Take a look at that picture and how could these clouds read the market
and guide us about the trend if it up trend or down trend.
We used to say ( Trend is my friend ) and these clouds will tell you on which
trend you are.
So that it will be better if you care just about selling signals if the price is
under the clouds and ignore any buying signal.
Also care about buy signals only if the price is above the clouds and ignore
any sell signal .
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Kumo shows liquidity in the market easily and this will tell us if
the market is flat or no.
Thick Kumo is a good support and resistance but the thin one is easy to break.
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There is another way to use the clouds buy the replacement between
senkou span A and B.
Kumo is already front of the price 26 candles
when the senkou span A and B change their places that means a new trend
direction will start
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Another picture and we can see how did the Kumo gave us a signal for
starting a new trend direction.
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We will see how can we catch the strong signal and ignore the weak one.
In general you can take strong signal if the signal based on all Ichimoku lines.
Cause they are working as a team as you will see.
Lets start the next part and see some live chances on the market.
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Kijun-sen and Tenkan-sen can give us perfect signals to buy and sell.
Let's look at the next picture and remember that we can filter these crosses to
take the best with many ways will talk about them now.
We will see many fake crosses specially while the ranging market , but how can we
filter them and how can we take good signals and ignore the fake signals ?
Remember dear Forex Winner that Ichimoku parts are working as a team and it will
be perfect if you take a signal passed on all of them. Lets go for the next pages to
see how are Ichimoku parts working as a team.
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The picture is very clear for anyone , the clouds filtered our entering and saved us
from a wrong signal.
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Here is a another way to chooses the best Kijun-sen and Tenkan-sen crosses
The signal will be strong is Kijun-sen line isn't flat while crossing. Look ate the
picture :
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Remember again that we didn't buy when the price crossed Kijun-sen going up
because we were under the clouds. ( We just sold )
And we didn't sell when the price crossed Kijun-sen going down , because we
were above the clouds ( We just bought )
That is a part from the last picture zoomed to explain when exactly we must enter
and close.
We enter or close with the second candle to the candle which crosses the line :
Look at the picture to be more easy.
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Now we will talk about good signals which we can take it from all Ichimoku
parts at the same time.
Clear signal to buy , and remember that we are above the clouds which means that
we can enter buy signals only cause we are on Up Trend.
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You can see that we didn't enter after Kijun-sen and Tenkan-sen crossing.
We had to wait crossing the clouds to make sure that we will start a new trend
direction.
We entered late and missed some pips but entering late was safe.
Will see another picture for the late entering on the next page.
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Here was a signal to sell from Chikou span ( crossed the price going down ) and
Kijun-sen and Tenkan-sen crossing , but we didn't enter before crossing the price
the clouds to make sure that we will start a new trend direction ( Down trend )
Entering was the opening of the next candle which crossed the clouds.
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The price just came out of the clouds , Kijun-sen and Tenkan-sen crossed and
Chikou span crossed the price going up.
That was a good chance to buy. We already were in Up trend but the price couldn't
cross the clouds and hit support are then went up.
I think that everything is very easy and clear now for your eyes. You understand
every line and what does it mean for the price , can read the market and take
signals for buy or sell.
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That is enough about entering and about reading the market , we can talk little
about the stop looses and take profits.
We can call Ichimoku is a trading system not just an indicator , so that we must
know when must we exit exactly from our trades which based on it.
Follow Me , Winners !
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To be honest , I don't have good skills to set a stop loss for my trades. I am a
full-time trader and already on the chart all the day , so that I can open , close
or change anything any time.
If you aren't a full-time forex trader please don't work without a stop loss.
First , let me tell you about two good ways to close your trades.
I prefer always looking at support and resistance areas ( Price action is perfect
always ) but there are to rules to close your trades on Ichimoku.
1- Rule one : If the price crossed Kijun sen.
2- Rule two : If tenkan-sen crossed Kijun sen.
You can use one of these rules to close your trades.
That picture is clear and show the two rules.
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Remember that drawing trend lines can help you to find a good way to close
your trades.
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Senkou Span A and B help us to set a stop lose and we can move the stop loss
with every straight line as you see on the picture.
And remember that you may see a signal to close before reaching the price for
the stop loss.
Look at this picture , we moved the stop loss many times for being in safe , but
we close with a signal for closing ( Rule one , two )
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Sincerely,
Ahmed Elagouz
Forex trader and investor.
ForexWinners.Net
facebook.com/elagouz
twitter.com/a_elagouz
Www.ForexWinners.Net
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